Moody assigns first-time rating to LienVietPostBank
Moody assigns first-time rating to LienVietPostBank
Moody’s Investors Service on Tuesday assigned first-time ratings and assessments to LienVietPostBank.
Under the ratings, Moody’s assigned LienVietPostBank’s long-term local and foreign currency deposits and issuer ratings of B2 with a stable outlook.
The ratings reflected baseline credit assessment (BCA) at B2 and the Government’s support to the bank at a positive level of B1.
BCA at B2 also showed improvements in assets’ quality and the profitability index at the bank. In addition, Moody’s also assigned LienVietPostBank’s short-term local and foreign currency deposits and issuer ratings of Not Prime, Counterparty Risk Assessments of B2 (cr)/NP (cr).
The ratings were released as the bank’s loans mostly focused on enterprises and retail, accounting for 54 per cent and 32 per cent of its total outstanding loans by the end of June 2017, respectively.
The bank has gradually shifted its lending structure toward retail.
In addition, Moody’s also assessed LienVietPostBank with a high liquidity of 39 per cent of its tangible assets by the end of 2016.
As of June 30, 2017, its total deposits accounted for 76 per cent of its total assets.
Moody’s expected that the bank’s capital resources would be improved thank to stable mobilisation from individual deposits with low costs, which LienVietPostBank has enjoyed due to its postal network nationwide.
According to Moody’s ratings, LienVietPostBank has similar ratings with five other commercial banks of Asia Commercial Bank (ACB), Military Bank (MB), Viet Nam International Bank (VIB), Techcombank and An Binh (ABB).
LienVietPostBank has been the first Vietnamese bank to receive the Asia Pacific ICT Alliance Awards (APICTA) 2017 award for its Vi Viet e-wallet – an online banking service, last month. APICTA is considered as the Oscar Award in the ICT sector in the Asia Pacific region. Vi Viet was awarded the second prize for Financial Industry Application.
By the end of November, the bank’s charter capital reached VND6.46 (US$284.3 million) trillion, total assets reached VND154 trillion, total capital mobilisation at VND141 trillion and total debt reached VND98 trillion.
It reported a pre-tax profit of VND1.7 trillion in the first 11 months of the year.
LienVietPostBank has the largest network among joint stock commercial banks, with 200 branches and over 1,000 transaction offices, nationwide.
